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Convertibles /
Commentaries

Value Line’s All Convertibles Total Return Index up 4.7% in the Third Quarter; 13.3% in Nine Months

10/25/2012
Stocks performed solidly in the third quarter, as the Federal Reserve announced more stimulus measures for the U.S. economy, and efforts to ease the crisis in the euro zone were stepped up. The uptick in stocks augured well for convertibles. Premiums over conversion value shrank somewhat, allowing for greater participation in the advances of the underlying common stocks.
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Convertibles /
Commentaries

Value Line’s All Convertibles Total Return Index Was Down 0.6% in Second Quarter, But Up 8.2% for the First Half of the Year

07/31/2012
Equity losses among convertibles were cushioned by interest or dividend income and investment value. The Value Line Convertibles Survey All Convertibles Total Return Index lost 0.6%, while the Recommended Convertibles, as a group, suffered a 4.1% drop.
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Convertibles /
Commentaries

Especially Recommended Convertibles Up 8.6% in First Quarter 2012

05/03/2012
The exodus of capital from safer investments into more-risky global assets curtailed the value of convertibles in the first quarter. While some lower-volatility convertibles had good performances, stocks underlying our recommended convertibles outpaced the debt issues 18% to 8.6%.
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Convertibles /
Commentaries

Convertibles Underperfomed in 2011

02/14/2012
Despite the uncertainties of global economic conditions last year—a downgrade in the U.S. credit rating, political gridlock in Washington, Europe’s unending debt crisis, as well as declining home prices, and higher oil quotations--the Dow Jones Industrial Average managed to end the year up 5.6%, thanks to a 12% increase in the fourth quarter.
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Convertibles /
Commentaries

Recommendations of the Week - August 12, 2011

08/18/2011
With most equity markets in a state of flux, investors are seeking safer havens, buying up corporate bonds and government securities. Some investors have found buying opportunities among downtrodden securities, convertibles included.
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Convertibles /
Commentaries

Warrant Hedging: A Timely Strategy

07/25/2011
The exceptional leverage provided by warrants makes them ideal candidates for hedging. A warrant hedge consists of a long position in a warrant and a short position in the underlying common stock.
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Convertibles /
Commentaries

Long-Term Value Investors May Want to Take a Closer Look at Warrants

06/20/2011
One of the issues common-stock investors face when waiting for a downtrodden issue to rebound is that their capital is tied up and unavailable for other, possibly more productive, uses. However, financial instruments, such as warrants, can help mitigate this problem. Indeed, they may be a good option for long-term investors that are bullish on battered stocks or sectors, such as financials.
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Convertibles /
Commentaries

ERI Convertibles Up 6.9% in First Quarter 2011

04/15/2011
Our recommended convertibles posted a 6.9% gain for the first quarter of 2011, beating most major indicies.
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Convertibles /
Commentaries

Greatbatch Convertible Offers Income and Safety

03/25/2011Greatbatch, Inc. (GB), the pioneer in pacemaker devices is an interesting investment in the healthcare/medical devices sector, as medical practitioners implant these devices almost on a daily basis. But because failure in any of these devices can send shock waves throughout the industry, investors can avoid volatility by investing in Greatbatch’s 2.25% convertible notes due 2013.
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